Tesla (TSLA) shares dipped below $1,000 each on Monday, to their lowest level since October. The electric vehicle giant's stock slipped as much as 5% during the morning session.
Traders highlight the stock dipped below its 50-day moving average, which is commonly considered a warning sign. Shares hit an intraday low of $957.21 during the morning session. A close below the 50-day moving average could signal more selling ahead.
A "key level is the gap low on 10/25... It also coincides the recent low on 12/6 - $950," Jay Woods, chief markets strategist at DriveWealth told Yahoo Finance.
"If that doesn’t hold as support I’d expect the gap to fill and possibly quickly. A retracement to the 100 day [moving average] at $865 would be a downside technical target to watch," he added.
"It did have a 37% correction from January to May. So a correction is not out of the ordinary when looking at TSLA historically," said Woods.
The stock's downward move comes on the same day CEO Elon Musk was named "Times Person of the Year".
Bianco Research President Jim Bianco points out "TIME Magazine's Person of the Year has historically been a great contrarian Indicator. Consider yourself warned." Bianco highlights other notable POY, including Amazon's (AMZN) Jeff Bezos given the accolade in 1999. The stock subsequently tanked during the dot-com bubble burst.
Musk began selling billions of dollars worth of Tesla shares in November, a move he had telegraphed earlier this year. The selling put pressure on the stock. Recent market volatility and concerns over the Federal Reserve taking steps to combat inflation have also caused intraday downward moves.
However some investors aren't phased by the stock's sell-off. Investment advisor Ross Gerber told Yahoo Finance last month recent price drops are an opportunity to buy.
The company hit $1 trillion in valuation for the first time ever on October 25th. The stock reached an all-time high of $1,229.91 on November 4.
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